csme irrefusable offer seminar october 2012 glasgow

1. Welcome and Introduction (David Hood, Competitive SME)2. Opportunity or Armageddon? Ready for the Economic

Upswing?(Jim Henderson, Shirlaws)

3. The 7 Stage Process to Competitiveness and the Irrefusable Offer(Brian Canavan & David Hood, Competitive SME )

4. Collaboration for SMEs(Jim Mather, former Minister for Enterprise, Scottish Government)

5. Panel Session

: Agenda

Opportunity or Argmageddon?

Jim HendersonPartner, Shirlaws

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2007 2008 2009 2010 2011 2012

Services

Construction

Production

Agriculture

Percentage points

GDP

UK GDP

Source: NAB

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2007 2008 2009 2010 2011 2012

Services

Construction

Production

Agriculture

Percentage points

GDP

UK GDP

Source: NAB

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2007 2008 2009 2010 2011 2012

Services

Construction

Production

Agriculture

Percentage points

GDP

UK GDP

Source: NAB

External Charts

The “W”

Time To Get PositiveThe business owner who’s educated, confident and secure about the economic cycle will be preparing their business for the next boom.

It’s this preparation over the next 12-18 months that’s business critical in maximising the benefits from the next boom.

• Get your numbers right – prepare and plan

• Get your timing right – match your business stages to economic phases – investment returns take time

• Get your culture right and reconnect back to your vision

• Packaging and IP development

• Distribute into distinctly defined niche markets

V = P x M

Multiple

4.0 V7 Scale

2.0 V6 Brand – Brand Architecture

1.5 V5 Channel Extension

1.3 V4 Product Innovation

1.2 V3 Systems & Infrastructure

1.1 V2 Culture & Talent

1.0 V1 Industry Benchmark (norm)

0.9 Costs

0.8 Revenues

0.7 Assets

0.6 Liabilities

0.5 Management Team

0.4 External Factors

1957

1973

2001

1930

1990

• “Move fast and break things”. Mark Zuckerberg

• "Innovation has nothing to do with how many R&D dollars you have. It's not about money. It's about the people you have, how they're led, and how much you get it.“ Steve Jobs

Time To Get PositiveThe business owner who’s educated, confident and secure about the economic cycle will be preparing their business for the next boom.

It’s this preparation over the next 12-18 months that’s business critical in maximising the benefits from the next boom.

• Get your numbers right – prepare and plan

• Get your timing right – match your business stages to economic phases – investment returns take time

• Get your culture right and reconnect back to your vision

• Packaging and IP development

• Distribute into distinctly defined niche markets

• Use the resources at www.shirlawscoaching.co.uk– Test where you are on Stages… is your business ready to grow?

– Test your attitude to entrepreneurial Risk.. are you ready to innovate?

– Read the articles and thought papers.

• Register for our newsletters and download “More Money, More Time, Less Stress”

“A roadmap for making your business brilliant again” FT’s Mike Southon

• Buy me a coffee

More help to get ready for recovery…now

Jim Henderson

@JimatShirlaws

jhenderson@shirlawscoaching.com

7 Stages to Creating the Irrefusable Offer

David Hood Brian Canavan

Competitive SME

© Copyright David Hood / Competitive SME

© Copyright David Hood / Competitive SME

: the 7 STAGES1. Strategy & Objectives2. Quick Gains3. Current Competitive Status

/ Engagement4. Possible Competitive

Advantage / True Value5. Prepare for Launch Success6. Refinement & Impact:

Maximising Revenue7. Sustaining your Edge

© Copyright David Hood / Competitive SME

© Copyright David Hood / Competitive SME

Example ofCompetitive SME tools... 1

Simple de/re-constructionof your Proposition

: De/Re-CONSTRUCT

© Copyright David Hood / Competitive SME

: De/Re-CONSTRUCT

© Copyright David Hood / Competitive SME

• Reactive• Resource focus• Legacy processes• Defined by industry• Make as much as we can• Make to and for margin

• Proactive• Opportunity focus• Adaptability / Resilience• Defined by market• Offer as much value• Make to need, order and demand

© Copyright David Hood / Competitive SME

Example ofCompetitive SME tools... 2

Using the Proposition Accelerator Tool (P.A.T.)

: P.A.T.

Proposition

Accelerator

Tool:

... the simple andultimate test!

© Copyright Brian Canavan / Competitive SME

© Copyright David Hood / Competitive SME

Example ofCompetitive SME tools... 3

the ultimate objective:The Irrefusable Offer

The Irrefusable Offer:Changing the Currency

What to Change What to Change to How to Change (Currency)

Rolls-Royce:Engine downtime costs a lot of money to the client

Keep the engines upin the air; (‘performance based logistics’)

‘Power by the hour’

First Class Physiotherapy:The point of interaction and reference for the problem of staff absence

Stop people getting hurt rather than waiting for them to get hurt; caring!

‘Reduce absence’

Laboratory Services:We charge more than the competition and are not seen as worth the money

Do not charge the way the industry does, always has, and always will

‘Helping shift product for the client’

© Copyright Competitive SME

CollaborationJim Mather

Gael Ltd.

ChairmanGael Ltd.

Jim Mather

Collaboration for SMEs

Jim Mather

My Messages

• Collaboration is a great survival strategy

• Competition is overstated and has been perverted

• Time for a new Beginning that resuscitates Trust

© Copyright Jim Mather - Gael Ltd

Two Problems with Collaboration

• Historical Connotations

• The Victory of “Competition is best” lobby– Competition - definition: The activity or condition of competing– Competitive - definition: Having or displaying a strong desire to be

more successful than others– Arguments:

• Competition has been overstated as a force for good, perverted & hijacked in some cases against the real economy and the consumer

• “Competition” often means “Lowest Price”

The Book The 14 Points Point 1:

Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.

The Case for Collaboration It’s synonymous with Optimisation An attribute of the “competitive”

W. Edwards Deming

© Copyright Jim Mather - Gael Ltd

Worthy Altruistic Unifying

Goal

Determination to constantly optimise the whole system

ActiveMaintenance of

Relationships

Constant Referral to Community Interest

and Community Involvement

Involvement of external people and

organisations that could“Contribute or Benefit

From” the success of the “System”

Charles Ehin

Moving Target

© Copyright Jim Mather - Gael Ltd

Opposition

Unifying Worth Goal

Fair & Open Processes

Collaboration

Experience

Relationship

Professor Ken Cloke’s Ladder of Unity

© Copyright Jim Mather - Gael Ltd

Collaboration Blending the Three Mind-sets

H1 – Status Quo – Business as UsualH2 – Gradual Evolution of Existing BusinessH3 – Radical Departure from Existing Business Model

© Copyright Jim Mather - Gael Ltd

WHAT THE HOPPER BROTHERS OBSERVED

The Puritan Gift

Likely reasons why change & innovation & change programmes fail

Future SME 2011

Lack of

Collaborative

Conversations

Common Factor?

© Copyright Jim Mather - Gael Ltd

Likely Drivers of Innovation

Steve Johnson – Where Good Ideas come from

The Presence of

Collaborative

Conversations

Common Factor?

© Copyright Jim Mather - Gael Ltd

Current Issues with Competition

• For Real Economy Businesses - Waste, Duplication– Margins decimated– High Attrition Rate

• Nations – People, Communities & Countries left in lurch

• Consolidation and creation of Monopolies– David Korten – Nightmare Scenario

• Small number of Beneficiaries:-– Financial Markets– Professions – Legal, Accountancy, Purchasing

• Countries rejecting the Washington Consensus – Getting better results than compliant nations

© Copyright Jim Mather - Gael Ltd

The Case for a Two-Legged Walk- The Genius of Dee Hock

© Copyright Jim Mather - Gael Ltd

Collaborate with whom?

How do we do it?

• Take Margaret Wheatley’s advice• Blend Competitive & Collaborative Strategies

– Reject the Race to the bottom– Take pride in offerings and prices

• Read:- – The Shell Scenario Planners

• Ari de Geus and Adam Kahane– The man that studied how Toyota did it

• Mike Rother– The Hopper Brothers’ Hero

• William B. Given

• Resurrect Deming • Put the systems in place to move beyond good intentions

– Commitment to Quality, Continuous Improvement and Challenging Orthodoxies– Quality Management Systems – Collaboration Tools

© Copyright Jim Mather - Gael Ltd

Other Questions

• Can we create such a blend:-– Locally?– Nationally?

• Will Horizon 2020 Drive behaviour?• Can we educate:-

– Purchasing Managers?– The Accountancy Profession?

• And avoid The City and Wall Street creaming off the profits?

© Copyright Jim Mather - Gael Ltd

Want to join in?davidh@mymarketinglife.combrian.canavan@aperturemarketing.co.uk

@competitivesme